A Canadian cannabis producer has announced its plan for entering the US adult-use market.

Also this week, NBA athlete Kevin Durant, who recently joined the investment scene, announced a partnership between his firm Thirty Five Ventures and Weedmaps, an online cannabis marketplace.


Keep reading to find out more cannabis highlights from the past five days.

 

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Tilray’s pursuit of US market puts it in line with operator

On Tuesday (August 17), Tilray (NASDAQ:TLRY,TSX:TLRY) confirmed that its intention to secure an entry into the US cannabis market has moved closer to becoming a reality.

The producer plans to buy a “majority of the outstanding senior secured convertible notes” of MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF), now held by Gotham Green Partners.

“The investment we are announcing in MedMen securities today … is a critical step towards delivering on our objective as we work to enable Tilray to lead the US market when legalization allows,” Tilray Chairman and CEO Irwin Simon said in a release.

The complicated maneuver will earn Tilray approximately US$165.8 million worth of MedMen’s convertible debt notes. However, a report from the Globe and Mail indicates the company has struggled to gather an investor majority to raise the funds needed to move forward with the transaction. Simon said the company’s largely retail investor base makes it difficult to collect a unifying vision.

Tom Lynch, chairman and CEO at MedMen, celebrated the deal by saying the company has faced a tremendous turnaround from its scandalous past.

“We are grateful to our stakeholders for their patience and support as we worked to fix the business and rebuild trust and credibility,” said Lynch after the transaction was announced. “We believe that patience has paid off, as these efforts have succeeded in attracting partners who share our vision for building the world’s most powerful cannabis retail brand.”

NBA superstar inks deal with cannabis tech entity

Durant, a two-time NBA champion and current start of the Brooklyn Nets, told ESPN his company’s partnership with Weedmaps is a way to try to destigmatize cannabis in the US.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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“I think it’s far past time to address the stigmas around cannabis that still exist in the sports world as well as globally,” he said.

For his part, Chris Beals, CEO of Weedmaps, said the partnership underscores a responsibility to hold conversations about the cannabis industry and its rules in the US.

“This partnership with Kevin Durant, Rich Kleiman, and the team at Thirty Five Ventures is a pivotal step forward in our ongoing efforts to break down stigmas surrounding cannabis, especially in the sports industry,” he said about the deal.

Weedmaps went public in June after merging with a special purpose acquisition company previously known as Silver Spike Acquisition. The company now trades as WM Technology (NASDAQ:MAPS).

Cannabis company news

  • TerrAscend (CSE:TER,OTCQX:TRSSF) told investors it has upped its stake in its New Jersey subsidiary to 87.5 percent via a payment of US$25 million in cash and a separate US$25 million done in combination with cash and TerrAscend common shares.
  • Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) released its financial report for the Q2 period, which ended on June 30. The company reported a net loss of US$37.4 million despite posting a 56 percent quarterly uptick in revenue for a total of US$91.3 million. The company has increased its revenue guidance for the next quarter and the whole year as well.
  • Rubicon Organics (TSXV:ROMJ,OTCQX:ROMJF) issued its Q2 financial results to investors. “Our share of the premium cannabis segment in Canada remains strong and we remain the go to organic brand among consumers,” Jesse McConnell, CEO of the firm, said. The company celebrated the fact that its brands have retained leading positions across provincial markets in Canada. However, the firm reported a net loss of C$5.1 million.
  • HEXO (NYSE:HEXO,TSX:HEXO) confirmed a new public offering worth US$140 million. The company plans to use the proceeds to close its acquisition of Canadian cannabis producer Redecan and for expenses related to its US expansion plans.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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US cannabis received a boost this week with a policy move that may hint at future changes.

Meanwhile, Amazon (NASDQ:AMZN) threw its full support behind cannabis reform in the US by way of a public post confirming the company’s acceptance of the drug.

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  • Research findings originated from cannabinoid-based collaboration with leading epilepsy researcher, Dr. Peter Carlen, at UHN that is also supported by a Mitacs Accelerate program grant.
  • Avicanna’s proprietary formulation showed promising pre-clinical results in reducing seizures and will be developed through the company’s pharmaceutical development pipeline as an epilepsy drug candidate.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS/

Avicanna Inc. (” Avicanna ” or the ” Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based pharmaceuticals is pleased to announce that it has filed a provisional patent application with the United States Patent and Trademark Office, entitled “Methods for Reducing or Eliminating Incidence of Seizures and Sudden Unexpected Death in Epilepsy”, on the use of a novel cannabinoid formulation (the “ Formulation Candidate ”).

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Cannabis legalization in Canada helped kickstart a financial revolution in the stock market with the launch of a diverse portfolio of marijuana firms.

With the boom of public cannabis businesses in full swing, are you thinking about investing in cannabis companies? If so, consider starting your journey here.

A wide spectrum of marijuana stocks have made their mark in the global industry thanks to the amount of money raised from investors and the attention the sector is getting from established industries.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
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What’s to come is anyone’s guess, but it seems this new and burgeoning industry is still in its early days, with diverse nations beginning to move forward with plans for legalizing marijuana.

That means there’s likely still money to be made in cannabis stocks as the market builds and cannabis products expand in availability over the next few years.

There are many differing opinions about how much the global legal cannabis market will be worth in the years to come, with estimates including US$70.6 billion by 2028 and US$91.5 billion by that same year.

But one thing is almost certain: The market is set to grow as opinions surrounding the plant evolve over time and as platforms crop up to supply different consumption preferences. And all of that will mean more cannabis investment opportunities with both existing companies and future entries to the market.

For now, let’s take a look at where you can invest your money at this point in time.

How to invest in cannabis: Canadian cannabis stocks

First thing’s first: Canada. This is the obvious place to start as marijuana is legal at the federal level and Canadian cannabis stocks are less likely than their US counterparts to suffer from political volatility.

That said, due to the uncertainty of investing in the US marijuana space, where the drug is not legal at the federal level, Canadian firms have been forced to make choices about how they operate. For example, Canada’s senior exchanges do not allow companies with American cannabis assets to list.

While the Canadian cannabis space continues to face challenges, investors are eagerly watching as companies move into the edibles and beverages markets and develop new products.

For lists of Canadian marijuana stocks to consider, click here.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

How to invest in cannabis: US cannabis stocks

Although some US states have legalized cannabis, American cannabis stocks may be riskier than those in Canada due to federal restrictions on the sale and cultivation of cannabis.

However, as the saying goes, the greater the risk, the greater the possible reward. The US market could grow up to US$43 billion by 2025, and that’s not even including the size of the market if nationwide legalization happens. It’s easy to see that US cannabis stocks could inherit a huge chunk of the pie if federal law finally legalizes the commodity.

All in all, picking the right US cannabis stocks could mean massive gains if the plant is ultimately legalized federally. It’s worthwhile for investors to do their research and to be aware of the risks and potential benefits involved in investing in the space.

For a list of US cannabis stocks to consider, click here.

How to invest in cannabis: A side note

Many companies in the cannabis space have begun to veer in one direction or another.

For example, some of the largest marijuana producers have moved towards deals with beverage or pharmaceutical companies for the production of novel new products. Others in the space continue to pursue innovation in the recreational market.

The beverage side in particular has seen interest from companies, with cannabis firms partnering with brew businesses. One example is Canopy Growth (NYSE:CGC,TSX:WEED), which has teamed up with Constellation Brands (NYSE:STZ), a leading producer in the alcoholic beverage industry.

It’s important to be aware that each niche has its own possibilities and challenges. For instance, while many market participants are convinced of the promise in beverages, these drinks have been hampered by strict marketing rules, among other factors.

Another aspect to consider is whether to pursue big caps or small caps. That has a lot to do with personal comfort. While big caps are often regarded as more stable than small caps, in the cannabis industry there’s been considerable volatility.

 

Cannabis Market Could Reach $5.5B By End Of Year

 
Experts Weigh In On Our Exclusive FREE Report. Can You Afford To Miss Out?
 

How to invest in cannabis: Cannabis ETFs

If you really know your cannabis companies, then you could enjoy larger gains by simply investing in those specific firms. However, if you aren’t overly familiar with the cannabis space or you are new to it, it could be a good idea to check out the cannabis exchange-traded funds (ETFs) available.

A cannabis ETF gives you exposure to several different cannabis stocks and takes the guesswork out of cherry picking which stock to bet on. One issue with ETFs is that like any other group dynamic, if one stock drops off it brings the whole fund down proportionally with it. Of course, the opposite is also true.

Recently investors have seen the addition of new ETFs offering exposure to the US market, including firms with entries into the hemp space, thanks to the sales of CBD products.

For a list of cannabis ETFs to consider, click here.

How to invest in cannabis: Final thoughts

No matter which way you slice it — or grind it, in this case — the cannabis market is an exciting business to invest in right now. Whether you invest in cannabis ETFs or Canadian or US marijuana stocks, or if you’re still waiting on the sidelines for more maturity from the types of cannabis companies trading, this industry is one to watch, and one that looks like it’ll keep climbing in the future.

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TransCanna (CSE: TCAN) (FSE: TH8) (“the Company”) is pleased to announce that plants are going into its first crop management site today – a greenhouse in Wesley, California.

The Company partnered with the 3rd generation cannabis farmers at 365 CannaFarms to consult on the construction of the state-of-the-art, computer-controlled greenhouse and to help manage the crop for the client, Central Valley Growers. The entire crop is comprised of premium genetic strains from Lyfted Farms, TransCanna‘s wholly-owned subsidiary.

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Acquisition strengthens clinic portfolio for mental health treatment using psychedelic-assisted therapies

Numinus Wellness Inc. (“Numinus” or the “Company”) (TSXV: NUMI), a mental health care company advancing innovative treatments and safe, evidence-based psychedelic-assisted therapies, today announced it has closed its acquisition of the Neurology Centre of Toronto (NCT), a leading Canadian provider of clinical neurologic care. The purchase agreement was previously announced on July 6, 2021 .

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